Aspect Medical Systems, Inc. (ASPM), a manufacturer of anesthesia monitoring systems, Thursday reported a rise in earnings for the second quarter, despite lower revenues, helped by a benefit from other income. However, on an adjusted basis, earnings for the quarter decreased marginally. The company also provided outlook for the third quarter.
The Norwood, Massachusetts-based company's net income for the second quarter was $1.9 million or $0.10 per share, up from $1.5 million or $0.07 per share in the previous year quarter. Recent quarter results included other income of $3.9 million.
Net income included stock based compensation expense of $1.6 million, compared to $2.0 million in the year-ago quarter.
On an adjusted basis, net income fell marginally to $3.4 million from $3.5 million in last year quarter. Earnings per share grew to $0.17 from $0.15 in the prior-year quarter. On average, five analysts surveyed by First Call/Thomson Financial estimated breakeven per share.
Total revenues for the second quarter declined to $25.2 million from $26.6 million in the same quarter of the earlier year. Five analysts' average revenue projection was $24.66 million.
Second quarter other income includes a $3.9 million gain from the company's repurchase of its convertible notes.
Loss from operations for the second quarter was $946 thousand, compared to income from operations of $18.4 million in the same quarter of the preceding year.
Gross profit margin for the second quarter was $18.8 million or 74.8% of revenues, lower than $20.9 million or 78.4% of revenues in the comparable quarter of the prior year.
For the six-month period, the company's net income declined to $1.7 million from $2.0 million in the year-ago period. However, earnings per share grew to $0.10 from $0.09 in the prior year period, mainly due to fall in share count.
On an adjusted basis, net income was $4.6 million, down from $5.6 million in the previous year period. Earnings per share increased to $0.26 from $0.24 in last year period.
Total revenues for the first six months were $49.6 million, down from $50.8 million in the preceding year period.
Moving ahead, the company expects third quarter GAAP net loss of $0.10 - $0.06 per share and non-GAAP results between a loss of $0.01 per share and earnings of $0.03 per share. The company also expects revenues of $24.1 million - $25.1 million. Five Wall Street analysts, on average, estimate a loss of $0.04 per share on revenues of $24.91 million.
Shares of Aspect Medical Systems are currently trading at $6.74, up 5 cents or 0.75%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.